The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman BANG, Moon-kyu, "Korea Eximbank") signed an Interbank Credit Facility Agreement amounting to $100 million with the Southeast African Trade Development Bank (TDB) via teleconference to respond to growing trade and investment volume between Korea and Africa.
Korea Eximbank Chairman Bang Moon-kyu said, "Since Africa has a great potential and strategic importance with a population of 1.3 billion, abundant natural resources, and strong young consumer base, we expect there will be increased need for economic cooperation in consumer goods trade such as automobiles and home appliances, as well as in agriculture, transportation and infrastructure, health and medical services."
He added, “In response to the COVID-19 pandemic, we will seek to expand our support as an official credit agency by establishing non-face-to-face business processes such as holding virtual signing ceremonies and webinars.”
Last year, Korea's exports and investments to Africa amounted to $6.3 billion and $500 million, respectively, which are lower than those to other markets.
However, as the number of consultations that African entities have with Korea Eximbank on transportation and infrastructure projects has steadily increased recently, and once the African Free Trade Zone (AfCFTA) is fully implemented, it is expected that Korean companies' trade and investments in Africa will increase accordingly in the future.
Korea Eximbank aims to support Korean companies' plans to enter the African market by utilizing the credit lines amounting to $700 million established with five African banks, including TDB and Afreximbank.
On July 30, Korea Eximbank held an webinar for Korea-Africa Interbank Credit Facility Program to help African companies expand their imports from and transactions with Korean companies using this Program.
The one-hour online seminar, arranged by the Korean Embassy in Kenya and co-hosted by Korea Eximbank, Korea Business Center of KOTRA in Nairobi and TDB, was attended by more than 60 companies, including Korean companies doing business in Africa and local importers.
